Tether Mints Fresh $3B USDT as Genius Act Paves Way for RLUSD

Over the past 24 hours, Tether has minted a staggering $3 billion in new USDT, fueling speculation across the crypto market just as new regulation under the GENIUS Act threatens to tip the balance toward Ripple’s RLUSD.

Tether Mints Billions In USDT During Regulatory Shift

According to data from Lookonchain, Tether minted yet another 1 billion USDT this morning, bringing the total to an eye-catching $3 billion in under a day. Market watchers suggest that this surge of newly minted USDT is aimed at injecting liquidity or supporting Bitcoin’s recent price movements.

However, this surge of USDT arrives at a critical juncture. The GENIUS Act, which recently passed the procedural vote in the House, proposes a strict federal framework for stablecoins. It directly challenges Tether’s long-criticized reserve practices by requiring full reserve backing, transparent audits, and regulatory licensing.

These developments might prove to be game-changing for Tether, which controls about two-thirds of the global stablecoin market with $156 billion in circulation. If Tether doesn’t quickly adjust, the GENIUS Act’s stringent reserve rules and audit requirements may force the company out of the US market.

The act forces stablecoin issuers to hold only cash or safe short-term assets and publish audited financial statements. Tether’s blend of bitcoin, precious metals, and partial attestations, rather than complete audits, could render continued U.S. operations impossible under the law.

The legislation includes a grace period, three years under the Senate version and 18 months under the House proposal. This could give Tether some time to pivot or launch a separate U.S.-compliant stablecoin.

RLUSD Advantage Over USDT With GENIUS Act

Ripple’s RLUSD looks increasingly ready to flip USDT. RLUSD has already positioned itself as a regulator-friendly stablecoin, unlike USDT. Ripple has applied for a national trust bank charter and a Federal Reserve master account. Additionally, they declared that BNY Mellon would serve as the official custodian of the RLUSD reserves, which the U.S. Treasury backs.

If the GENIUS Act is passed into law, RLUSD will be one of the first stablecoins to be fully integrated. This will help the stablecoin to gain a significant advantage as billions could flow out of USDT into regulated alternatives.

Crypto enthusiast Jacob King shared that Tether printing billions of USDT each week feels like artificially propping up Bitcoin’s price ahead of impending regulation. He also warned of a “magnificent crash” if those funds flee to fully audited coins like RLUSD.

Apart from RLUSD, U.S.-based Circle could benefit significantly from the act. Circle’s stock still jumped 34% on news of the GENIUS Act passing the Senate, highlighting investor optimism around regulated stablecoins.

As Tether mints billions more USDT to defend its market share, the regulation bill could redefine what constitutes a “safe” stablecoin in the U.S. If passed, RLUSD is positioned to capture a surge of capital migrating from shadow stablecoins like USDT.